Spaargids.beAs a landlord, you may be happy if you receive your rent neatly every month. But does your rented house or apartment, i.e. your investment, really yield optimal returns? According to Dewaele real estate agency, these are the ten mistakes that you should avoid, as Spaargids.be knows, if you want to achieve maximum returns from your real estate.
By Tom Dejonghe, in collaboration with Spaargids.be
1. Not asking for the correct rental price
If you charge too much rent, you risk vacancy. A loss that can quickly add up. But a rental price that is too low also has an immediate effect on the return, which you cannot immediately do anything about once the property has been rented out. The best rent to ask depends on the market situation, the location, the comfort and the facilities that the home offers.
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2. Go for the first tenant that comes along
When you rent out a home, you do not do so to the first tenant, but to the best candidate. Someone you are (as) certain (as possible) will be able to pay every month and maintain the property well.
3. Choose your tenant according to the right criteria
Only take into account objective characteristics, such as solvency and creditworthiness. The general rule is that your tenant must earn three times as much net income as the rent. So make sure that the information provided by the prospective tenant is credible.
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4. Have a good description of the place drawn up
When the tenant leaves, the property description is an indispensable reference to determine rental damage and wear and tear. You must therefore have the location description drawn up in sufficient detail, with photos and text. Afterwards, both parties sign the document and you each pay half of the costs.
5. Check whether your tenant has fire insurance
If the building is damaged by leaks, fire or storm during the rental period, your tenant is liable. And so he or she must take out fire insurance. This is necessary for the building; it is allowed (and highly recommended) for the contents.
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6. Follow up on rent payments carefully
Are you not receiving rent? Then take action after the first month. Send a first reminder, a second reminder and finally a notice of default. This way, if necessary, you can even go to the justice of the peace to have the lease terminated. Does your tenant still appear willing to pay, for example with a payment plan? Then that is possible, but put it in writing, in case your tenant does not keep his promises.
7. Don’t forget to index timely and correctly
You may index once a year, on the anniversary of the rental contract. Or a maximum of three months retroactively to the birthday, if you index too late.
8. Prepare an annual statement
This point is especially important if you rent out apartments or in co-ownership. For example, if you rent out apartments, there are common costs, part of which you and the tenant pay. Many syndics will then provide you with an annual statement, in which the common costs have already been broken down. In that case, be sure to charge the tenant the amount, unless a lump sum has been agreed.
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9. Maintain the home
The better the condition of your home, the more rent you can ask. In addition, the tenant can have the quality of the home checked by means of a compliance investigation if you do not maintain your home sufficiently.
10. Don’t skimp on good file structure
When you invest in real estate, you want a high return with as few costs as possible. But small investments can sometimes yield a lot. This includes what you pay for a conclusive rental agreement, a high-quality description of the property, and a registration of the rental agreement, so that the tenant cannot leave without notice or compensation. These are relatively small costs that can ultimately save a lot of money.
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Read more on Spaargids.be:
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This article was brought to you by our partner Spaargids.be.
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